if you are storing your documents and data on iCloud Drive, these items will be mirrored on your Mac as well. This is the default. Only, if you enable the option "optimise Mac Storage", iCloud may remove some of the local copies to save local storage, when you are low on storage on your Mac. But normally, your documents will be in iCloud and on your Mac as well. And will sync to all your other iCloud devices and keep the documents and data on all your devices identical.
But if you want a backup of your documents and data, iCloud will not suffice. The problem ist the syncing. The documents and data will always be identical to the copies on your Mac. If you accidentally delete items permanently, you will not be able to recover them from iCloud. They will have been removed from iCloud as well. iCloud will give you the added security of an offsite storage, however. If your house burns down with all your backup disks, or devices get stolen, you can recover your data from iCloud. But iCloud does not protect you against user errors. You need an additional backup.